Firms price discriminate because, by doing so, they obtain a higher profit than by charging a single price
a. True
b. False
A
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Foreign exchange markets are markets wherein the goods of international trading partners are exchanged
Indicate whether the statement is true or false
A(n) _______ does not pose the problem of scarcity; one use of the good is not an alternative to another use.
A) free good B) scarce good C) economic good D) monetary good
The demand for the Franconian franc in the foreign exchange market equals 14,000 - 3,000e and the supply of francs in the foreign exchange market equals 2,000 + 2,000e, where e is the nominal exchange rate expressed in U.S. dollars per franc. If the franc is fixed at 2 U.S. dollars per franc, then to maintain this fixed rate Franconia's international reserves must:
A. decrease by 4,000 dollars per period. B. decrease by 2,000 dollars per period. C. increase by 4,000 dollars per period. D. increase by 2,000 dollars per period.
All of the following are criticisms of the Lorenz curve EXCEPT
A) The Lorenz curve does not include in-kind transfers. B) The Lorenz curve does not account for age differences. C) The Lorenz curve does not account for differences in the sizes of families. D) The Lorenz curve does not account for differences in education levels.